Euroz fends off Opes Prime claim

A Perth millionaire investor and former car dealer has lost his case against his former stockbroker, Euroz Securities, with the Federal Court of Appeal finding in favour of Euroz.

The claims, made by Bruce Drummond through his company Eric Preston Pty, related to multimillion losses from his share portfolio when Opes Prime collapsed in March 2008.

Mr Drummond took legal action after losing his $7.8 million share portfolio in the Opes collapse. He said that he received unsound advice from his broker when he moved his margin-lending facility from Adelaide Bank’s Leveraged Equities to Opes Prime.

The Federal Court judgment was handed down in Perth on Friday.

“Euroz Limited ... advises that the Federal Court of Appeal has found in favour of its wholly owned subsidiary Euroz Securities Limited with respect to the claims made against it by Eric Preston Pty Ltd," the company said in a statement to the Australian Securities Exchange after market close on Friday.